MADISON, Wis. - It's the scam that seemingly won't go away, and now Wisconsin authorities are reporting that the latest version of the Internal Revenue Service telephone hoax is starting to go around the state.

The updated scam is based on a change in procedure recently made by the IRS, which now has begun using four approved debt-collection companies to assist in collecting tax debts more than two years old.

In this new variant, victims are called by someone posing as an officer of one of these approved IRS debt-collection agencies, threatening a lawsuit or arrest if they don't pay up immediately via prepaid debit card.

"Over the last six weeks, we've received 142 calls from consumers alerting us that they have been not necessarily the victim of this particular call, but they did get the call," said Frank Frasetto, a division administrator at the Wisconsin Department of Agriculture, Trade and Consumer Protection. "So, we know it's continuing and it's not going away."

In what should be a tip that it's a scam, victims are warned not to contact their tax preparers, attorneys or even the IRS until the payment is made. Frassetto advised consumers that the IRS makes initial contact with taxpayers only via the U.S. Postal Service. He said Wisconsin consumers need to remember that any threatening call demanding an immediate payment is a scam.

"First of all, the IRS does not call people, threaten them and demand payment," he said. "And secondly, the previous twist was that people had to buy an iTunes gift card, not just your standard old prepaid debit card. That obviously is a huge red flag."

Frassetto advised those receiving such a call to just hang up, but then to write down the phone number of the caller and report it so the state's consumer-protection experts can help warn others.

"What we do is, we take this information," he said, "and if we see a pattern emerging we try to alert other Wisconsin consumers of these things that are happening and to be on the lookout and to not be taken in by this particular fraud."

These scam IRS calls can be reported via the state's Consumer Protection Hotline at 800-422-7128, or by sending an email to datcphotline@wisconsin.gov. More information is online at treasury.gov and datcp.wi.gov.


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Air travelers could face fewer obstacles in securing a refund if their flight is canceled or changed under new federal rules announced Wednesday.

The moves are being praised by watchdog groups. The Department of Transportation said airlines are now required to promptly provide passengers with automatic cash refunds when they are owed one.

Teresa Murray, consumer watchdog director for the U.S. Public Interest Research Group, said some carriers have not adhered to standards, leaving passengers in a bind.

"They would drag their feet, and they would say, 'Well, you bought your ticket from a ticket agent, so we don't know where your money is. Or, here, have a voucher,'" Murray explained.

Amid higher complaint volumes, companies will be forced to act quickly. The new rules, which are being phased in, provide clearer definitions for travel disruptions, including delays of at least three hours on a domestic flight and six hours on international flights. A key industry group responded to the announcement by touting transparency efforts among carriers.

Murray acknowledged most people are not frequent flyers, and it is hard for them to keep up on all the least practices and policies among airlines.

"The average person only flies once every 18 months," Murray pointed out. "This will just bring transparency to that process and it kind of evens the playing field."

Murray added it could come in handy for Midwestern customers when a winter storm wreaks havoc on air travel. The new rules also require refunds for baggage fees when a piece of luggage is delayed by 12 hours or more for domestic flights. And there must be upfront disclosure on fees for first and second checked bags and carry-on bags.


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Wisconsin lawmakers recently debated reforms for payday loans. Efforts to protect consumers come amid new research about financial pain associated with cash advances offered through smartphone apps. The Center for Responsible Lending is out with findings that detail how "earned wage advances" from digital platforms come with extra costs disguised as things like tips. Traditional payday lenders are often criticized for charging excessive interest rates on loans that are usually around $500.

Lucia Constantine, a researcher with the Center for Responsible Lending, said customers are usually seeking smaller amounts from the apps, but she warns they can be just as costly.

"They are trapping consumers in a cycle of borrowing that is similar to that of a payday loan, " she said.

The report said after using these financial products, customers are seeing overdrafts on their checking accounts increase by 56% on average. Industry leaders deny they're barraging consumers with hidden fees, stressing that features such as suggested tips are optional. More broadly, a bipartisan payday loan reform bill in the Wisconsin Legislature failed to advance this month.

Constantine said like longstanding payday lenders, these cash advance apps can be hard to regulate. Meanwhile, she urged those in a bind to explore other options.

"[They should] try talking to their friends and family as a first source. The other option which I would recommend is reaching out to their credit union or banking institution to see if they can get some sort of small-dollar loan," she said.

She noted places such as credit unions typically provide more transparency on loan costs. According to the report, three-quarters of consumers took out at least one advance on the same day or day after a re-payment was posted.


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Food prices remain high, in Montana and across the country.

A new report by the Federal Trade Commission says the country's largest grocery companies are gouging consumers, by keeping prices artificially high.

Many grocers, retailers and wholesalers have consolidated to cut costs. Grocers continue to blame supply chain problems, even though regulators have said most of those issues have been resolved.

President of the advocacy group Farm Action, Angela Huffman, said retailers were doing more than making up for lost revenue during the pandemic-era supply chain disruptions - and the FTC report says they continue to do so.

"In 2021, the retailer revenues, they rose to more than 6% higher than their total costs, and that those profits are still going up," said Huffman. "So, in the first nine months of 2023, the profits increased to 7%."

At nearly 6.5%, Montana had the nation's ninth-highest grocery price increase in 2023.

The FTC data show Amazon, Kroger and WalMart each gained market share during and after the pandemic - while profits continued to rise.

Other large retailers and wholesalers have consolidated, which they say gives them more buying power and the ability to pass those savings on to customers.

Huffman said that isn't what's happening, and calls on regulators to fine the grocers, or more.

"This would be kind of the farthest extent of what they could do, but go so far as breaking them up," said Huffman. "In years past, they broke up the telephone companies and the railroads and, you know, that would be the ideal outcome for us, is to take away their excessive power."

Huffman also points to a 150% increase in egg prices in 2023, which producers blamed on the avian flu. The FTC says the disease did not justify the drastic price hike.